This excerpt taken from the EBAY 10-Q filed Apr 25, 2007.
Note 7 Stock Repurchase Program
In 2006, our Board of Directors, or Board, authorized a stock repurchase program for $2.0 billion of our common stock. In January 2007, our Board authorized the expansion of the stock repurchase program to provide for the repurchase of up to an additional $2.0 billion of our common stock by January 2009. The stock repurchase activity under the program during the first three months of 2007 is summarized as follows (in thousands, except per-share amounts):
These repurchased shares are recorded as treasury stock and are accounted for under the cost method. No repurchased shares have been retired.
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (Continued)
In the three months ended March 31, 2007, we paid $99.6 million to enter into a structured equity hedging transaction that matured on March 30, 2007. According to the terms of the transaction, on the maturity date, if the market price of our common stock exceeded a pre-determined price, we had the option to settle the transaction in cash or shares of our common stock. On the maturity date, based on the market price of our stock, we chose to settle for $102.3 million in cash for settlement of the transaction. The premium of approximately $2.7 million was recorded as additional paid-in capital.